Auto-Hedging: These trading strategies aim to minimise risk exposure. Many
choose to engage in the automated rebalancing of portfolios to hedge their exposure to
market risk, exchange rate risk and volatility risk.
Statistical Strategies: Based on the analysis of historical data, the system can
identify trading opportunities and long-term trends. Past market data is analysed and
preference over current market data.
Scalping: Also known as arbitrage, this is a method of taking advantage of the
difference between multiple markets, in order to gain from the difference in market
As currency pairs are represented in pips, this process may involve opening
large positions. This is countered by the fact that there is a guaranteed return.
Market Sentiment: This strategy looks at the momentum of markets and follows
The automated trading software will identify the entry and exit points, executing the
accordingly. Learn more about algorithmic trading
strategies in forex.